nep-cul New Economics Papers
on Cultural Economics
Issue of 2013‒03‒09
four papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Mass media effects on the production of information: Evidence from Non-Governmental Organization (NGO) Reports By Mathieu Couttenier; Sophie Hatte
  2. The Relationship between Local Content, Internet Development and Access Prices By OECD
  3. Digital Content Strategies By Daniel Halbheer; Florian Stahl; Oded Koenigsberg; Donald R. Lehmann
  4. Piracy in a two-sided software market By Rasch, Alexander; Wenzel, Tobias

  1. By: Mathieu Couttenier; Sophie Hatte
    Abstract: The media report news that in turn influences behaviors. This news is drawn from a set of available information. In this paper, we study how the set of information is "exante" affected by anticipated media coverages. First, we take an exogenous but anticipated shock of media coverage: Olympic Games and FIFA World Cups. Then, we estimate the effect of this media coverage shock on the production of reports by a publicity-seeking actor: NGOs. We use a unique database that collects NGO reports on a sample of 572 firms in 140 countries between 2002 and 2010. Those reports deal with firm practices, and tone of the speech of these reports is classified as "good" or "bad" for the reputation of the firm. We find that these media coverage shocks significantly impact the production of information. More precisely, stories that are substitute to sport news (reports on host and participant countries) are significantly less reported by NGOs, while the number of reports on complement to sport news (practices of sponsors) significantly increases. Further, in both cases bad reports overreact compared to good ones.
    Keywords: Media; Information; Non Governmental Organizations; Multinational Firms
    JEL: D83 L31 L82 M14
    Date: 2013–02
  2. By: OECD
    Abstract: This research study is the result of a collaboration between the Organisation for Economic Co-operation and Development (OECD), the Internet Society (ISOC) and UNESCO. The study was initially presented at the sixth annual meeting of the Internet Governance Forum (IGF) on 27 September 2011 in Nairobi (Kenya).<P> The study confirms that local content, Internet infrastructure and access prices are three inter-related elements. In particular: (i) better connectivity is significantly related to higher levels of local digital content creation; (ii) countries with more Internet infrastructure (at all income levels) are also countries which produce more local digital content as measured by Wikipedia entries and by web pages under a given country-code, top-level domain; (iii) countries with more international connectivity have lower domestic broadband prices, and countries with better domestic infrastructure have lower international bandwidth prices.<P> The study concludes that three key lines of policy considerations evolve out of this research: (i) fostering content development, (ii) expanding connectivity, and (iii) promoting Internet access competition.
    Date: 2013–02–18
  3. By: Daniel Halbheer (Department of Business Administration (IBW), University of Zurich); Florian Stahl (Department of Business Administration (IBW), University of Zurich); Oded Koenigsberg (Department of Marketing, London Business School); Donald R. Lehmann (Marketing, Columbia Business School)
    Abstract: This paper studies content strategies for online publishers of digital information goods. It examines sampling strategies and compares their performance to paid content and free content strategies. A sampling strategy, where some of the content is offered for free and consumers are charged for access to the rest, is known as a “metered model” in the newspaper industry. We analyze optimal decisions concerning the size of the sample and the price of the paid content when sampling serves the dual purpose of disclosing content quality and generating advertising revenue. We show in a reduced-form model how the publisher’s optimal ratio of advertising revenue to sales revenue is linked to characteristics of both the content market and the advertising market. We assume that consumers learn about content quality from the free samples in a Bayesian fashion. Surprisingly, we find that it can be optimal for the publisher to generate advertising revenue by offering free samples even when sampling reduces both prior quality expectations and content demand. In addition, we show that it can be optimal for the publisher to refrain from revealing quality through free samples when advertising effectiveness is low and content quality is high.
    Keywords: Information Goods, Sampling, Content Pricing, Advertising, Dorfman-Steiner Condition, Pricing, Product Quality, Bayesian Learning, News Websites
    JEL: L11 L15 L21 M21 M30
    Date: 2013–02
  4. By: Rasch, Alexander; Wenzel, Tobias
    Abstract: This paper studies the impact of software piracy in a two-sidedmarket setting. Software platforms attract developers and users to maximize their profits. The equilibrium price structure is affected by piracy: license fees to developers are higher with more software protection but the impact on user prices is ambiguous. A conflict between platforms and software developers over software protection may arise: whereas one side benefits from better protection, the other party loses out. Under platform compatibility, this conflict is no longer present. --
    Keywords: developer,piracy,platform,software,two-sided markets
    JEL: L11 L86
    Date: 2013

This nep-cul issue is ©2013 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.